Social media tries to change business models
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From digital place of informal and horizontal conversation to entertainment platforms to, tomorrow, mixed systems where the marketplace component will be relevant Social media are refining their business model trying to go beyond the high capacity to generate profits that the personalization of advertising has guaranteed them, since the inception before and the rise of Facebook. Algorithms, with their secret and constantly evolving formulas, are the critical factor determining the operation of social networks. And the search for new ways, with attempts that are not always effective and the search for an identity still to be built.
Just think of Mark Zuckerberg’s incursions into the metaverse, which appeared to most to be an excessive forward flight, or the acquisition of Twitter by Elon Musk, overpaid by the same admission as the number 1 of Tesla and SpaceX. Or the evolution of Instagram which first effectively cannibalized Snapchat to then compete with the emerging TikTok. Profits, content and user data, on which the most heated game is being played for the local authorities in the era of deglobalization, which in the US in some cases have intervened against the Chinese social network owned by ByteDance, for fear of a leak of user data US to China.
Business models
Since Elon Musk targeted Twitter and then acquired it for the monstrous sum of 44 billion dollars, attention has focused on the evolution of that social media business model centered on personalized advertising based on users’ social habits. which in the past decades had decreed its success. Also because the acquisition has had serious consequences: General Mills and General Motors have interrupted or reduced paid advertising and obviously the board has had to concentrate on developing new models of collaboration. An evolution that could lead Twitter to become a marketplace, according to some, capable of engaging commercial partners on a different dimension from the current one (even if for the moment the emergency is to regain advertising).
But the theme is at the heart of the strategy of other entities, with a sort of tiktoketization of content that makes Instagram and Facebook increasingly similar to the Chinese platform which has the effect of homogenizing content and format, to conquer and retain the largest consistent. A strategy that reinforces the homophilia of the networks and that confirmation bias that has always characterized social media.
On the other hand, the case of LinkedIn is different, a professional platform which, precisely to provide each user with an original point of view, develops the sharing of dialectical contents with its algorithm, which favor different points of view, instead of confirming the user’s information diet.
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